Chinese telecoms equipment maker ZTE Corp may pay more than US$1 billion to the US government to settle long-standing allegations of foreign bribery, reported Reuters.

The US Justice Department has advanced its investigation into ZTE this year, focusing on alleged violations of the Foreign Corrupt Practices Act in South America and other regions, the sources said. The act prohibits payments or anything of value to foreign officials to secure business.

US officials are working on a resolution that could see ZTE pay more than $1 billion, the sources said. One source added the penalty could reach $2 billion or more, based partly on alleged gains from corrupt contracts.